GLIL Infrastructure and Bluefield Solar to invest a further £141m in UK solar energy assets in phase two of strategic partnership
23 July 2024
- GLIL to acquire a 50% stake in 112MW solar energy portfolio
- Investment marks phase two of strategic partnership with Bluefield Solar, following formation of partnership and initial £200 million investment announced in December 2023
- Third phase will see GLIL fund a selection of Bluefield Solar’s development pipeline
GLIL Infrastructure LLP (“GLIL”), the £4.1 billion UK-based infrastructure investment fund, and Bluefield Solar Income Fund Limited (“Bluefield Solar” or “BSIF”), the London-listed income fund (LON: BSIF), are set to inject a further £141 million into solar energy assets in the latest phase of their strategic partnership.
The investment will see GLIL acquire a 50% stake in a 112MW portfolio currently owned by Bluefield Solar, reiterating its commitment to invest in UK-focussed solar energy assets. The portfolio spans southern and central England and comprises of nine operating sites, all backed by the relevant Renewable Obligation Certificates (‘ROCs’) accreditation.
The transaction, which is subject to regulatory clearance and expected to complete in mid-August 2024, will also see GLIL fund the building of 17MW of new assets that are expected to be grid connected within the next 12 months. GLIL’s strategic partnership with Bluefield Solar was formed in December 2023 when the two funds announced the acquisition of 58 operational UK projects from Lightsource bp. That deal saw GLIL invest £200 million and Bluefield Solar invest £20 million in combined 247MW projects.
For the third phase of the partnership, Bluefield Solar and GLIL have provisionally agreed to commit to funding a selection of Bluefield Solar’s development pipeline.
Julia Carter, Deputy Portfolio Manager at GLIL Infrastructure, said: "This acquisition represents the continuation of our strong strategic relationship with the team at Bluefield Solar, as well as our commitment on behalf of our members to helping drive the energy transition. Not only do these assets make a welcome addition to our growing green energy portfolio, but they maintain our strong track record of backing core UK infrastructure projects. Along with our members and Bluefield Solar, we recognise our role as custodians of the future. We have a responsibility to ensure our investments help decarbonise industries, but also support local communities through regeneration projects and job creation, and help drive the economy forwards.”
John Scott, Chairman of Bluefield Solar, added: “We are delighted to announce a landmark transaction for the sector in the completion of the second phase of Bluefield Solar’s strategic partnership with GLIL, providing a significant source of capital for BSIF while validating Bluefield Solar’s Net Asset Value through this endorsement from an institutional investor of the highest calibre. The cash proceeds of c£70 million will be used prudently to reduce Bluefield Solar’s leverage while also enabling Bluefield Solar to commit further capital to BSIF’s significant proprietary development pipeline. The new projects in development provide an exciting opportunity for significant value accretion for shareholders while also expanding the UK’s solar resources to help achieve our national climate goals.”
GLIL is a partnership of UK pension funds, specially designed to help pension fund members tap into the stable, inflation-linked returns that infrastructure investment offers. GLIL currently manages £4.1 billion of committed capital, with more than £3 billion deployed into a growing portfolio of infrastructure assets spanning renewable energy, battery storage, regulated utilities, ports and logistics, trains, hospitals and schools.
GLIL invests on behalf of Local Government Pension Scheme funds and pools including Local Pensions Partnership Investments, Greater Manchester Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund, as well as Nest, the government-established workplace pension provider. In May 2024, the fund announced it had raised a further £475 million for investment in UK infrastructure from across its entire membership.